Two departments: Individuals who transfer assets into offshore trusts or obtain income through offshore trusts shall declare and pay individual income tax.

Odaily Planet Daily News Two departments have issued an announcement regarding matters related to individual income tax for offshore trusts. If an individual transfers assets into an offshore trust or obtains income through an offshore trust, this constitutes income under Article 2 of the Individual Income Tax Law of the People's Republic of China, and the individual shall declare and pay individual income tax in accordance with the provisions of this announcement. Offshore trusts as referred to in this announcement refer to trusts established under foreign laws or other legal arrangements with trust functions. Other legal arrangements with trust functions refer to foreign legal arrangements that are not established in the name of a trust but essentially have similar trust functions, excluding financial products issued by banks, insurance companies, securities companies, fund companies, etc., which are regulated by the financial regulatory authorities of the country or region where they are located and conduct business independently and bear risks for unspecific clients. (Jinshi)